Black Hills Corp. Provides Estimated Impact of Recent Cold Weather on its Utilities by State

Rhea-AI Summary

On March 1, 2021, Black Hills Corp. (NYSE: BKH) reported significant impacts from extreme cold weather in February on its utility operations. The company incurred approximately $600 million in additional natural gas costs to meet demand. Initial estimates detailed $565 million in incremental costs across gas utilities with Arkansas leading at $165 million. Electric utilities faced $60 million, with Colorado Electric at $30 million. These figures are preliminary and subject to final accounting adjustments.

Positive

• Electric and natural gas systems performed reliably during extreme weather.
• The company serves 1.3 million utility customers across eight states.

Negative

• Incurring approximately $600 million in additional natural gas costs.
• Potential financial strain from high commodity costs impacting profitability.

RAPID CITY, S.D., March 01, 2021 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today released additional details regarding the impacts from the extreme cold weather during February on its utility businesses and customers. During this extreme weather event, the company’s electric and natural gas systems performed remarkably and delivered energy safely and reliably to its customers.

In a Form 8-K filed recently, Black Hills indicated it incurred approximately $600 million of additional natural gas costs to meet customer demand through Feb. 24. The initial estimates of the incremental commodity costs to serve its natural gas and electric utilities’ customers during the recent cold weather are generally as follows:

Arkansas Gas	$165 million
Colorado Gas	$75 million
Iowa/Nebraska	$190 million
Kansas Gas	$100 million
Wyoming Gas	$35 million
Total Gas Utilities	$565 million
Colorado Electric	$30 million
South Dakota Electric	$15 million
Wyoming Electric	$15 million
Total Electric Utilities	$60 million

These incremental commodity costs for February are initial estimates and subject to true-up as final accounting for transactions and related activities are completed for February.

Black Hills Corporation
Black Hills Corp. (NYSE: BKH) is a customer focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.3 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com.

Investor Relations
Jerome E. Nichols
605-721-1171
jerome.nichols@blackhillscorp.com

24-Hour Media Relations Line
888-242-3969

FAQ

What were the financial impacts of the cold weather on Black Hills Corp. (BKH)?

Black Hills Corp. incurred approximately $600 million in additional natural gas costs due to extreme cold weather.

How much did Black Hills Corp. report for its gas utilities during February's extreme weather?

The total incremental costs for gas utilities were estimated at $565 million.

What is the estimated cost for Colorado Electric due to the cold weather?

The estimated cost for Colorado Electric is $30 million.

How many utility customers does Black Hills Corp. serve?

Black Hills Corp. serves approximately 1.3 million natural gas and electric utility customers.